Alton Steel to cease operations, lay off more than 250 employees
Alton Steel Inc. announced Monday that after nearly 25 years of steel production, operations will cease effective this week, impacting more than 250 metro-east employees.
A release issued by the company stated that “insurmountable challenges including aging infrastructure, intense market competition, and industry consolidation … make continued operation economically unsustainable.”
“This is an incredibly painful decision for everyone involved,” CEO Chris Ervin stated in the release.
“... But we’ve reached a point where the fundamental structural challenges cannot be overcome. The steel industry has changed dramatically, and as a privately held company, we cannot access the capital required to compete with larger, publicly traded competitors that have newer facilities and modern equipment.”
The closure affects approximately 253 employees, plus contractors and vendors. The company plans to work with state workforce development agencies, local employers and other regional manufacturers to help employees find new jobs.
The acquisition of U.S. Steel by a Japanese firm, Nippon, threatened 600 jobs at Granite City Steel, but the company announced last month that it plans to restart its blast furnaces this April.
Reactions from area legislators
State Rep. Amy Elik released a statement regarding the closure.
“I am stunned to learn about Alton Steel’s decision to shut its doors. First and foremost, my concerns are with the over 250 employees whose lives are upended by this closure. I will engage with state and local partners to do everything I can to assist with job placement. I am thankful for the 25 years that Alton Steel contributed to the community and region, but today I am heartbroken to learn of this closure and ask the community to come together to support the workers.”
A statement was also issued by the office of State Sen. Erica Harriss, who questioned the sudden announcement.
“I am truly shocked by today’s announcement. Just weeks ago, Alton Steel was actively hiring, and there were no indications that these jobs or this facility were at risk. Families built their plans and their futures around this work, and that sense of stability has been pulled out from under them without warning.
“An abrupt closure of this scale - affecting more than 250 workers - raises serious questions. How did we go from job postings to a sudden shutdown? What changed, and when? And was proper notice given to the people whose livelihoods depended on this facility? Right now, there are far more questions than answers.
“I will be seeking answers from company leadership immediately. The workers and the Alton community deserve transparency, honesty, and a clear explanation of how this decision was made.
“My heart is with the workers and their families, and my focus is on making sure they are not left to navigate this crisis alone.”
About Alton Steel Inc.
Alton Steel was established in 2003 after partnering with former Laclede Steel employees.
Laclede Steel filed for Chapter 11 bankruptcy in summer 2001, leaving around 550 people without jobs, according to a March 2002 News-Democrat report.
An investment group headed by former Laclede manager Melvin O. Cook worked to acquire Laclede’s assets to start Alton Steel.
The following January, federal and state officials reached an agreement in which Laclede would sell its mill for $1 million to Alton Steel. The funds would be placed in a trust and used by Alton Steel to clean the site, supervised by the U.S. Environmental Protection Agency and the Illinois EPA.
Alton Steel Inc. opened in September 2003 and is located at #5 Cut St. in Alton.
